The Schedule III balance sheet format for companies is a fixed, two-sided layout of equity and liabilities, and assets, with every item split between current and non-current and tied to a numbered note. This guide covers Division I, the format for companies that follow Accounting Standards. It is written for CA firm partners, audit managers and article assistants who prepare or review company financials.
- Division I covers companies required to comply with the Companies (Accounting Standards) Rules, 2006, and G.S.R. 207(E) amended it from 1 April 2021.
- Figures must be rounded by reference to Total Income, with comparatives for every item, including the notes.
- Ageing schedules are mandatory for trade payables, trade receivables, CWIP and intangible assets under development.
What is the Schedule III balance sheet format?
Schedule III to the Companies Act, 2013 prescribes how a company presents its balance sheet and statement of profit and loss. It is issued under section 129 and has three divisions. Division I is for companies following the Companies (Accounting Standards) Rules, 2006. Division II is for Ind AS companies and Division III is for NBFCs that follow Ind AS.
The legal text most teams work from is the Ministry of Corporate Affairs notification G.S.R. 207(E) dated 24 March 2021, which amended Schedule III with effect from 1 April 2021. The ICAI Guidance Note on Division I (revised January 2022) explains the format line by line.
Schedule III sets minimum disclosure requirements. Line items, sub-line items and sub-totals may be added on the face of the statements when that helps understanding. Where an Accounting Standard needs a different treatment, the standard prevails and the Schedule stands modified.
Division I, II and III at a glance
| Division | Applies to | This guide |
|---|---|---|
| Division I | Companies complying with the Companies (Accounting Standards) Rules, 2006 | Covered in detail |
| Division II | Companies required to comply with Ind AS | Not covered |
| Division III | NBFCs required to comply with Ind AS | Not covered |
Balance sheet format: line items
The balance sheet has two parts: equity and liabilities, then assets. Each part is arranged in the order below, with a note number against every line and columns for the current and previous reporting period.
The header reads "Name of the Company", "Balance Sheet as at" the reporting date, and the unit of rupees used. Columns are particulars, note number, current period figures and previous period figures.
| Section | Line items in prescribed order |
|---|---|
| Shareholders' funds | Share capital; reserves and surplus; money received against share warrants |
| Share application money | Share application money pending allotment |
| Non-current liabilities | Long-term borrowings; deferred tax liabilities (net); other long-term liabilities; long-term provisions |
| Current liabilities | Short-term borrowings; trade payables (MSME dues and other creditors shown separately); other current liabilities; short-term provisions |
| Non-current assets | Property, Plant and Equipment and Intangible assets (PPE, intangible assets, capital work-in-progress, intangible assets under development); non-current investments; deferred tax assets (net); long-term loans and advances; other non-current assets |
| Current assets | Current investments; inventories; trade receivables; cash and cash equivalents; short-term loans and advances; other current assets |
The statement closes with a TOTAL on each side and the line "See accompanying notes to the financial statements".
Current vs non-current classification
An asset is current if it meets any one of four tests; otherwise it is non-current. A liability is current on similar tests. This split must be shown on the face of the balance sheet for every asset and liability.
An asset is current when it:
- is expected to be realised in, or is intended for sale or consumption in, the normal operating cycle;
- is held primarily for trading;
- is expected to be realised within twelve months after the reporting date; or
- is cash or a cash equivalent, unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.
A liability is current when it is expected to be settled in the normal operating cycle, is held primarily for trading, is due within twelve months after the reporting date, or the company has no unconditional right to defer settlement for at least twelve months. Where the operating cycle cannot be identified, it is taken as twelve months.
Since the 2021 amendment, current maturities of long-term borrowings must be disclosed separately under short-term borrowings.
What changed from 1 April 2021
G.S.R. 207(E) changed terminology and added disclosures. The table below lists the changes that affect the balance sheet and its notes.
| Area | Position from 1 April 2021 |
|---|---|
| Heading | "Tangible Assets" replaced by "Property, Plant and Equipment"; "and Intangible assets" added |
| Rounding basis | "Turnover" replaced by "Total Income" in paragraph 4 of the General Instructions |
| Trade payables | New ageing schedule for dues for payment |
| Trade receivables | Ageing schedule with a 6-month bucket |
| Share capital | Shareholding of promoters disclosed |
| Borrowings | Current maturities of long-term borrowings shown separately; use of bank and institution borrowings for the stated purpose |
| Assets under construction | CWIP and intangible assets under development ageing and completion schedules |
| Additional regulatory information | Title deeds, benami property, wilful defaulter, struck-off companies, ratios and more |
Ageing schedules in the notes
Ageing is the part of the format that most often needs rework. The schedules are measured from the due date of payment. Where no due date is specified, they are measured from the date of the transaction. Unbilled dues are disclosed separately.
| Schedule | Buckets | Rows |
|---|---|---|
| Trade payables due for payment | Less than 1 year; 1 to 2 years; 2 to 3 years; more than 3 years; total | MSME; others; disputed dues MSME; disputed dues others |
| Trade receivables | Less than 6 months; 6 months to 1 year; 1 to 2 years; 2 to 3 years; more than 3 years; total | Undisputed considered good; undisputed doubtful; disputed considered good; disputed doubtful |
| CWIP | Less than 1 year; 1 to 2 years; 2 to 3 years; more than 3 years; total | Projects in progress; projects temporarily suspended |
| Intangible assets under development | Same buckets as CWIP | Projects in progress; projects temporarily suspended |
For CWIP and intangible assets under development, the total must tally with the balance sheet amount. A separate completion schedule is needed where completion is overdue or cost has exceeded the original plan, and suspended projects are detailed separately.
The ICAI Guidance Note adds that after an amalgamation or merger the original date is used for ageing. If that information is not available, the fact should be stated.
Rounding and unit of measurement
Figures in the financial statements must be rounded off based on the company's Total Income. Once a unit is used, it applies uniformly across the balance sheet, profit and loss statement and notes.
| Total Income | Rounding off |
|---|---|
| Less than ₹100 crore | Nearest hundreds, thousands, lakhs or millions, or decimals thereof |
| ₹100 crore or more | Nearest lakhs, millions or crores, or decimals thereof |
The word is "shall" after the 2021 amendment, and the Guidance Note states that showing full rupee figures is no longer an option. The header "Rupees in ..." should state the unit chosen.
Worked example: trade payables ageing
A company with Total Income of ₹82 crore prepares a trade payables ageing schedule in rupees, then reports in lakhs. The company is below ₹100 crore, so lakhs is a permitted unit. Amounts below are outstanding from the due date of payment.
| Row | Less than 1 year | 1-2 years | 2-3 years | More than 3 years | Total |
|---|---|---|---|---|---|
| MSME | 4,20,000 | 60,000 | 0 | 0 | 4,80,000 |
| Others | 18,50,000 | 2,10,000 | 90,000 | 40,000 | 21,90,000 |
| Disputed dues, MSME | 0 | 0 | 0 | 0 | 0 |
| Disputed dues, others | 0 | 1,00,000 | 0 | 0 | 1,00,000 |
| Total | 22,70,000 | 3,70,000 | 90,000 | 40,000 | 27,70,000 |
Check: 4,80,000 + 21,90,000 + 0 + 1,00,000 = 27,70,000, and 22,70,000 + 3,70,000 + 90,000 + 40,000 = 27,70,000. In lakhs, the schedule total is ₹27.70 lakhs. Unbilled dues, if any, are shown separately and are not part of this total, and the ageing total plus unbilled dues should reconcile to the trade payables line.
Steps to prepare the balance sheet
- Confirm the division. Check whether the company follows Accounting Standards (Division I) or Ind AS, and use the matching format.
- Fix the rounding unit. Read Total Income, choose the unit from the permitted range, and use it everywhere.
- Map ledgers to line items. Assign each trial balance ledger to a face line and a note, and test current vs non-current.
- Build the notes. Prepare share capital, reserves, borrowings, trade payables, PPE reconciliations and other notes, each cross-referenced from the face.
- Prepare ageing schedules. Age payables, receivables, CWIP and intangible assets under development, and tie totals to the face.
- Add regulatory disclosures. Cover title deeds, ratios, promoter shareholding, CSR, borrowing utilisation and others as applicable.
- Add comparatives and review. Give prior period amounts for every item, then review for consistency between face, notes and ageing.
See Schedule III Automation
Mapping ledgers, ageing and notes by hand each year is where reviews slow down. See how Schedule III statements are built from your trial balance.
Manual vs automated preparation
Mapping and ageing are mechanical, so they can be automated. Classification judgements, disclosures and materiality calls still need a qualified CA.
| Task | Manual (Excel) | Automated |
|---|---|---|
| Ledger to line item mapping | Re-mapped each year; high error risk on new ledgers | Group mapping reused; exceptions flagged |
| Ageing buckets | Formula-heavy; breaks on date or sign errors | Computed from invoice and due dates |
| Notes tie-out | Manual cross-checks | Notes generated from the same mapping |
| Comparatives | Retyped from last year's file | Carried forward from prior period |
| Disclosure judgement | Auditor | Auditor |
Automation helps with arithmetic and consistency. It does not decide whether a deposit is a cash equivalent, whether a dispute exists or whether a disclosure is material. Our article on automating Schedule III preparation from Tally covers the data side.
Common mistakes to avoid
Most review comments on a Schedule III balance sheet come from a few repeat errors.
- Mixed units. Notes in rupees and the face in lakhs breach the uniform unit rule.
- Wrong rounding basis. Using turnover instead of Total Income for the rounding threshold.
- Missing disputed rows. Ageing tables without disputed MSME and disputed others lines.
- Ageing from invoice date. Ageing runs from the due date unless none is specified.
- Unbilled dues inside buckets. These are disclosed separately.
- Old headings. "Tangible Assets" is no longer the heading; use "Property, Plant and Equipment".
- Totals that do not tie. CWIP and intangible assets under development totals must match the face.
- No comparatives. Prior period amounts are needed for every item, including notes.
Pre-sign-off checklist
| Check | Done |
|---|---|
| Correct division chosen | Yes / No |
| Unit and rounding match Total Income | Yes / No |
| Current vs non-current tested for every item | Yes / No |
| Four ageing schedules prepared and tied to the face | Yes / No |
| Promoter shareholding and ratios disclosed | Yes / No |
| Ratios changing by more than 25% explained | Yes / No |
| Comparatives present for all items | Yes / No |
How Auditmann helps
Auditmann is an AI-native audit and compliance automation platform for CA firms in India. It is built and tested inside a practising CA firm.
- Pulls trial balance and master data from Tally for Schedule III statements
- Maps ledgers to Schedule III line items using your group hierarchy
- Builds ageing schedules and notes from the same mapped data
- Carries forward prior period comparatives so face, notes and ageing stay consistent
- Leaves classification and disclosure judgement with the auditor
See Schedule III Automation
Prepare the balance sheet, notes and ageing from one mapped dataset.
Key Takeaways
- Division I of Schedule III is the balance sheet format for companies following the Companies (Accounting Standards) Rules, 2006.
- Every asset and liability is split between current and non-current on the face of the balance sheet.
- Figures are rounded by Total Income, with one unit used uniformly across statements and notes.
- Trade payables, trade receivables, CWIP and intangible assets under development each carry a prescribed ageing schedule.
- Ageing runs from the due date of payment, or the transaction date if none is specified, and unbilled dues are shown separately.
- G.S.R. 207(E) of 24 March 2021 renamed Tangible Assets as Property, Plant and Equipment and added regulatory disclosures from 1 April 2021.
- Comparatives are needed for every item, and the notes must tie to the face.
For related reading, see the blog index or the Auditmann homepage. The notification and guidance are published by the Ministry of Corporate Affairs and the Institute of Chartered Accountants of India.
This article is for information only and is not tax, legal or professional advice. Laws change. Consult a qualified professional before acting.